Why Use Counterparty?

6 August 2018

For Individuals

Create Custom Tokens

Custom Counterparty tokens can be used for a wide range of purposes and act as their own cryptocurrency, while still running on the Bitcoin blockchain. Unlike ordinary bitcoin, custom tokens can be used to issue dividends, confer voting rights, as electronic tickets, access to content, and more. Tokens are easily created in Counterwallet at the cost of 0.5 XCP for alphanumeric tokens, or free for numeric tokens.

Fundraising

Crowdsales are a popular way to raise funds for startups, intiatives, or personal projects. They function in a similar way to Kickstarter in allowing a group of individuals to collectively fund a project or venture.

For Entrepreneurs

Access Global Markets

Counterparty allows you to attract investors from anywhere in the world, allocate equity, and distribute profits from your company to them automatically. Additionally, the built-in asset exchange means that your tokens become part of a global marketplace with other companies and projects. Because Counterparty uses Bitcoin it’s easy to raise funds, pay vendors and staff, and get business done with the world’s most popular digital currency.

Multisignature Addresses

Multisignature addresses require signatures from more than one Bitcoin private key to spend their funds, meaning enhanced security that also allows team members and third-party firms to initiate transactions that can be approved later by management. This also means that third-party auditing services can ensure the delivery of goods and services once contractual obligations have been satisfied.

For Finance

Automated Escrow & Clearing-house

The roles of escrow agent and clearing house are filled by the Counterparty protocol itself, eliminating unnecessary costs, time, and third-party trust. In any transaction the required funds are debited from each party’s address immediately, and are not released until the conditions of the contract have been met.

Peer-to-Peer Derivatives & Trades

In the Counterparty protocol traditional financial instruments are implemented as self-executing smart contracts, thereby eliminating all counterparty risk and the need for an intermediary party. You can engage in asset exchange, binary options, or contracts for difference directly with other network participants trust-free and immediately.